Market's view on Chemring
Published on April 2024
- A stock watcher is not selling shares until a buyout occurs, and finds CNC a valuable niche defence contractor.
- CHG was awarded €66.7m from the EU and £32m from the Government of Norway for ammunition production to support Ukraine, with more defence funding expected.
- CHG shares are reaching multi-year highs.
- Increased defence spending is benefiting CHG.
- CHG shares have reached May 2022 highs.
- CHG has shown great results and has a positive medium-term outlook.
- A stock watcher expresses frustration over CHG shares falling back to £2 levels after seeming gains.
- Concerns about CHG and QQ’s vulnerability to a takeover due to close ties with the MoD; interest in buying Cohort if prices fall.
- A stock watcher anticipates CHG shares breaking and holding above 300p.
- Optimism for CHG’s future despite a recent countermeasures issue which resolved favourably; ongoing share buyback programme viewed positively.
- CHG considered undervalued, especially with ongoing defence needs from NATO and potential conflicts involving China and Taiwan.
- Frequent buying and selling strategy discussed among stock watchers to leverage CHG’s price movements.
- The issue with a countermeasures order seen as confined to a small part of CHG’s business could present a buying opportunity if it causes a sell-off.
- Discussion on maintaining trading and long-term holdings in CHG, with an expectation of a buyout.